The installation of solar photovoltaics for charity homes in rural Malaysia: A community-based approach

 
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International Journal of Smart Grid and Clean Energy

      The installation of solar photovoltaics for charity homes in
            rural Malaysia: A community-based approach
                             Nur Azfahani Ahmad a , Jasrul Jamani Jamian b
a
    Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA, Perak Branch, Seri Iskandar Campus, 32610, Perak,
                                                                    Malaysia
                      b
                        Faculty of Electrical Engineering, Universiti Teknologi Malaysia, Johor Bahru, Johor, Malaysia

Abstract
The adoption of solar panels installation in Malaysia, especially for rural areas are still at the preliminary stage, due to
the high cost of the system and the limited access to this technology in the remote region. The availability of this
green electricity for public buildings are still limited since the current dissemination of this green energy technology
is still funded by the government, resulting in slow progress in the area. In addition, Malaysians also received
subsidized power supply which has led to high dependency on this conventional supply from the national electricity
provider, Tenaga Nasional Berhad (TNB) which is slowing the progress of solar energy usage. However, since 2014,
there has been a gradual increase in electricity tariff that has led to the increasing cost of monthly electricity bills.
This has affected many sectors in paying off the utility bill, especially charitable organizations owned by private
Non-Governmental Organizations (NGOs). The significant impact may occur to private charity homes in rural areas
which usually depended on donations from the public. The worst scenario may arise, for instance the power may be
cut-off if the electricity bills cannot be paid on time. Therefore, this research paper will try to determine whether solar
panel installation through a community-based approach can help the institutions to gain savings from the monthly
electricity bill and provide self-sufficient electricity to charity homes. A case study in the region of Perak Tengah in
Malaysia was selected to identify if the community-based approach could help to access this green electricity at the
selected charity home. An empirical approach showed that the charity home has the potential to save 70% of monthly
electricity bills after installing a 2 kilowatts peak (kWp) solar photovoltaics system under a community service
program.

Keywords: Charity homes, community-based approach, solar photovoltaics

1. Introduction

   As of 2014, electricity tariffs in Malaysia have increased at a 4% rate annually which has affected the
monthly cost of living and electricity bills [1]. The basic tariff rate has increased from Malaysian Ringgit
(MYR) 0.22 cents per kilowatt hour (kWh) in 2014 [2] to MYR 0.39 cents per kilowatt hour (kWh) in
2020 [3]. The demand for electricity by Malaysians has also increased by about 4.8% over the past 10
years due to the changing of modern lifestyle and has been influenced by the increasing use of high-tech
electrical appliances [4]. Current electricity consumption growth in Malaysia has increased from 135.8
Terawatt-hour (TWh) in 2015 to 149.2 TWh in 2016 [5].
   This rapid trend has also influenced uncontrollable electricity consumption in charity institutions that
are largely managed by private parties across the country [6]. The use of lights, fans, television, radio and
other electrical appliances are important for these charity homes. Although the power load of these
electrical appliances is lower in charity homes than other types of buildings, the frequent use within 24
hours of these appliances have resulted in high power consumption annually [6]. Indirectly, this would
result in an increase in management costs involving monthly utility bills if electricity tariffs continue to

      * Manuscript received September 1, 2020; revised April 2, 2021.
        Corresponding author. E-mail address: nuraz020@uitm.edu.my.
        doi: 10.12720/sgce.10.4.278-285
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                  Nur Azfahani Ahmad , et al.: The installation of solar photovoltaics for charity homes        279

increase in the future.
   The result of this situation is the insufficient financial resources that have a lasting impact on private
charity institutions. There has been a study that suggests the main problem of charity institutions in
Malaysia is poor financial management which depended on donations from the public [6]. With
inconsistent financial resources, it is feared that if electricity tariff rises in the near future, these
institutions will have issues in sustaining the charity homes.
   Therefore, one of the recommendations to control this issue is to implement community programs
between local communities and the building management in order to provide self-sufficient electricity. To
date, there have been limited studies involving community efforts in supplying sustainable electricity to
charity institutions through a community-based approach. For this study, sustainable resources of
electricity are available through solar energy which is highly available in Malaysia [4]. Clearly, these
charity institutions need supports from various government and private agencies in installing solar panel
systems on the building before any Government solar scheme can be implemented, whether the Feed-in
Tariff (FiT) Scheme or Net-Energy Metering (NEM) scheme [7]. Therefore, this paper limits the study on
the economic aspect of introducing these schemes to the charity homes. It will only focus on whether
installation of solar panels through a community-based approach could help these institutions to gain the
saving benefit of monthly electricity bills from sustainable electricity resources. The findings from this
study will have a significant impact on ensuring that charity institutions can continue their operations
without facing any financial difficulties especially in maintaining their electricity supply and sustaining a
self-sufficient electricity.

2. Literature Review

2.1. The community -based approach
   Efforts to help in providing sustainable electricity to local communities through community programs
are not uncommon situation for some countries. Among countries that are actively promoting sustainable
energy programs under the community service program are Indonesia, Nigeria, Cambodia, Bangladesh
and India [8]. Under the United Nations Development Programme (UNDP) effort, these countries are
introducing solar energy to rural and low-income people through a network of non-governmental
organizations and community-based cooperation [8]. This effort often draws the participation of non-
governmental organizations as well as volunteers from technologists, local residents and donors to
communities that cannot afford expensive green energy, which generated is from solar, mini hydro, wind
and many more.
   This community-based approach can be defined as a social mechanism that integrates local
characteristics by taking into account the same situation within the community, from individual needs to
neighbourhood needs [4], [9], [10]. It also identifies groups that have similar backgrounds and same
pattern of living-hoods. These community efforts are actually under the community-based approach
introduced by the United Nation in 2008 by targeting sustainable energy-generating opportunities such as
solar, hydro and wind energy. Since 2000, this approach has helped to address power supply problems
and unstable electricity in third world countries [10]. These sustainable energy generation projects
continue to grow rapidly in most countries, enabling the local community to get basic electricity through
renewable energy [8]. The positive impact of these projects is on improving the living standard of the
local communities and educates them to use green energy as an opportunity for income generation [4], [9],
[10]. It also promotes a more sustainable distribution of electricity in small neighbourhoods through the
sharing of green energy sub-meters [11]. It has succeeded in shifting the original habits of the people who
prefer to use unsustainable fuels, such as coal and firewood in the past to more sustainable resources [8].
However, in the case of Malaysia that has a stable electricity supply from the Government, the problem of
electricity consumption is more towards educating local communities on how to save energy consumption
while helping them to ease the burden of monthly utility bills [4]. Different approaches are needed to
encourage Malaysians to be more open and inclined towards exploiting green energy such as solar energy.
280                   International Journal of Smart Grid and Clean Energy, vol. 10, no. 4, October 2021

Therefore, target groups are needed to introduce this green energy at the rural community scale. In the
context of this case study, the aim of the research is to focus on helping charity institutions to operate as
usual with the help of sustainable electricity.

2.2. The potential of solar energy in Malaysia
   The potential in generating electricity from solar generation is excellent given that Malaysia receives 4
to 5 kWh m2 of solar radiation per day per annum [11], which is higher than mega solar panel
manufacturers such as Germany, Japan and China. Solar energy can be obtained through various means
including roof-mounted panel installation, solar farm applications, hybrid and off-grid installation that do
not require connection with the national power grid [12]. Malaysia receives high solar irradiance due to
the country’s location on the Equator line which allows this country to receive more than 4 hours of peak
solar hour (PSH) [11]. In addition, the Malaysian roofing system with a gradient of between 10 and 30
degrees allows for the maximum sunlight acceptance [13]. One study has proven that if solar panels
(photovoltaic) are successfully installed on 4 million roofs of buildings in Malaysia, it would be able to
meet approximately 25% of current electricity demand at 34,194 megawatts (MW) per household [7].
This indirectly contributes to the savings of monthly electricity bill payments in Malaysia. However, at
the moment, only 2% of electricity in Malaysia is generated using renewable energy sources, compared to
fossil fuels such as petroleum, coal or natural gas [7].
   Furthermore, the basic cost of installing solar panels is still considered expensive for the middle and
low-income population of Malaysia, which is estimated to be worth MYR 1000 for a 1000- watt panel
system [14]. This is equivalent to the average monthly income for low income groups in Malaysia,
especially in rural areas. Therefore, various efforts and strategies need to be introduced by many
stakeholders in promoting this green energy in order to evade the issue of rising electricity tariff in the
near future. To support this effort, an approach can be made through introducing community programs
that can provide funding for the installation of this solar panel system to the rural communities. These
efforts will lessen the government's burden in allocating funds or subsidies for rural sectors. Many
government agencies have been involved in creating these community projects, for instance; research
grants that encourage university-based knowledge transfer projects such as the University Community
Transformation Center (UCTC) grant, introduced by the Ministry of Higher Education since 2012. Under
the Government National Blue Ocean Strategy (NBOS) [15], it helps to mobilize the university's
academic resources and physical infrastructure to develop the community environment. In addition, the
Electricity Supplies Industry Trust Fund (AAIBE) and e-Funds from the Ministry of Science, Technology
and Innovation (MOSTI) [16] have also introduced grants for local communities in obtaining sustainable
energy projects [17]. There were also solar state-programs introduced by the state government of
Malaysia, like “SuriaKu” program that has been introduced by the Perlis-state government [18] and
Kedah Solar Farm that has been introduced by the Kedah-state government [19].
   Other than that, there are also community projects that involves private donations with the aid of
Malaysian public and private universities, including Universiti Malaysia Perlis [20] and Universiti
Teknologi Petronas [21]. Most of the projects have involved indigenous groups who live in remote areas
of Malaysia which do not have a stable supply of electricity. This has led them to rely on diesel
generators to power electricity at night. However, efforts to help rural communities to use solar energy in
a typical and traditional village are still limited. These villages are different from the indigenous villages
since they are the majority groups of population in Malaysia and receive a stable supply of electricity
from TNB. The residents of these villages comprise major ethnic groups in Malaysia, which are Malay,
Chinese and Indian [22].
   A study has reported that almost 64% of rural people from traditional villages in Malaysia are still
unaware of the importance of solar-generated electricity in addressing the problem of increasing domestic
electricity tariffs [13], [1]. These groups also have no other access to electricity than relying on the
national utility, TNB alone [4]. Concerns may arise among these groups when electricity tariffs increase
or electricity disruption occurs in the communities in which they live in the near future. Therefore, it is
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significant to introduce solar-generated electricity through a community-based approach that enables the
distribution of solar energy technology through donations from capable stakeholders to the rural
communities. This includes all charities homes in rural areas. Through this effort, these groups can enjoy
self-sufficient electricity from solar energy without relying solely on government funding.

3. The Methodology

   The purpose of this research is to introduce the concept of a community-based approach (CBA)
program [23] for charity homes located in rural areas by supplying solar panels in generating self-
sufficient electricity. The methodology used is based on a case study selected through 2 processes,
namely (i) field research (site visits and observations) and (ii) action-research methodology (live-research)
conducted directly on the research site. Action-research methodology can be defined as a research effort
that directly involves practitioners to see the results of the study and the actual strategies used at the site
[23]. This methodology involves practitioners among technologists and volunteers during the installation
of the solar panel systems on a fully-operational site. Researchers conduct live observation and record all
data on-site in order to evaluate significant strategies, installation procedures and system capabilities.
Meanwhile, donors and the communities involved (building owners and residents) act as observers and
provide physical assistance when needed. These research phases were conducted in the selected case
study, a private charity home located in the Parit district of Perak Central in the Perak state of Malaysia.
The charity home has 80 occupants and 6 staffs who use 2 blocks of buildings with an area of 30 m x 40
m. There are (i) a concrete-block hall and (ii) an open-space activity area.

3.1. Empirical data on site
   From the field survey, it was found that the electrical appliances used in the case study consisted of 10
lamps, 7 fans, 4 radios, 4 televisions, 1 rice cooker, 1 computer and 1 printer. Table 1 shows the details of
electrical appliances, including power load (watt), number of electrical appliances used and duration of
use (hours).
Table 1. Electricity consumption/hour in the case study

   From Table 1, it is found that the daily electricity consumption of the case study is 12.38 kW. The
installation of a solar panel system for the case study involves the installation of photovoltaics (PV) panel
system which is mounted on the roof, together with; solar batteries, inverter system and solar charge
controllers. From the load consumed at 12.38 kW per day, it is then multiplied by 30 days (12.38 kW x 30
days) which is equivalent to 371.4 kW per month. In accordance with the electricity tariff regulations
provided by Tenaga Nasional Berhad [2], every electricity tariff rate for a private building that exceeds
300 kWh per month should be rated under TNB Commercial Rate (Type B - Low Voltage Commercial
Rate). In accordance with this rate, this case study will be charged MYR 43.50 cents per kWh for the first
200 kWh/month and MYR 50.90 cents per kWh for the next 201 kWh/monthly (Refer to Table 2).
282                     International Journal of Smart Grid and Clean Energy, vol. 10, no. 4, October 2021

Table 2. Monthly electricity bill

   Based on Table 2, the management of this institution has to pay MYR 175.42 for the monthly
electricity bill. Even though the amount is considered small for a charity home, it is still able to affect the
financial condition of this charity home. They still have to depend on donations from the public.
Therefore, the installation of solar panel systems is significant to ensure that energy savings can be
achieved for this building through green resources

3.2. The analysis
   At the beginning of this research, a PV system sizing were calculated and the specification is obtained (See
Table 3). A 2-kWp PV system often used as a basic indicator for medium and small-scale buildings (Ahmad,
Salleh, et al., 2019). In this research, the selected case study has a medium size building. A 2-kWp stand-alone
solar PV system has been suggested for a 10 m2 building roof with an efficiency of 20% to achieve a good peak
of energy load. It was successfully installed on the roof of this charity home and connected to the storage
battery, inverter and solar charge controller.

Table 3. PV system sizing and specification

                                                                              Parameter                       Specification
                                                                          Size of the system                     2 kWp
                                                                    Energy Demand (During Peak                  2.29 kWh
                                                                              Hours)
                                                                       Peak Solar Hour (PSH)            11 am - 2 pm (4 hour)
                                                                        System Efficiency (%)                     85%
                                                                       Depth of Discharge (%)                60% (for 3 days)
                                                                            Battery (Volt)                       12 Volt
                                                                             Battery Nos                            5
                                                                        Total of Ampere/Hour                     150 Ah

   It supplements the power supply to both buildings, with no connection to the existing TNB national
grid. This is to avoid any disruption to the existing power supply. It also takes into account that the energy
supplied by this system will be maximized with the help of a storage battery.

4. The Findings

   Through previous researchers, it was found that the 2-kWp solar panel system could generate 10 kWh
of electricity per day [4]. This equates to 300 kWh of electricity per month. This is obtained by
calculating = 10 kWh x 30 days which is equivalent to 300 kWh per month. Table 4 compares the cost of
the monthly electricity bill before the solar PV installation and the saving gained for the monthly
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electricity bill after the installation of the solar PV system.

Table 4. PV system sizing and specification

     Electricity Tariff (From Malaysian                   Total (MYR)                              Saving (MYR)
       Tenaga Nasional Berhad TNB)                (Before Solar PV Installation)            (After Solar PV Installation)
   First 200 kWh                              MYR 0.44 x 200 kWh                              371.4 kWh – 300 kWh
                                              = MYR 88.00                                           = 71.4 kWh
   201 kWh and above
                                              MYR 0.51 x 171.4 kWh = MYR 87.42
   The Remaining Power kWh
                                                                                                   0.44 x 71.4 kWh
    Amount to be paid (MYR)/monthly:                          175.42                                    31.42

    Table 4 shows that after the installation of solar panels, the management of the institution only has to
pay MYR 31.42 for the electricity bill with a saving of 70% from the previous bill. This reflects a positive
impact in using solar-generated electricity and will encourage the use of sustainable energy. A survey has
been done in identifying the actual installation cost collected from the community-based approach (CBA)
program through donations (mentioned in Section 3) and two (2) local solar contractors in Perak for a 2-
kWp PV system (See Table 5). With the overall cost of MYR 5000, the PV system installation at the case
study has been conducted with the aid of researchers, technologists and volunteers and the return on
investment (ROI) for this project has been achieved in only 2.9 years with the overall cost of MYR 5000
(See Table 6). This cost is lower than the cost provided by contractors.

Table 5. Comparison of cost

                                                  CBA Program           Local               Local
                                                   (self-buy)        Contractor 1*       Contractor 2*
                                                                       (MYR)               (MYR)
                                2 kWp PV           MYR 2000           Lump Sun            Lump Sum
                                  System
                                 Inverter          MYR 350                     -               -
                                 Battery           MYR 2600                    -               -
                              Solar Charger         MYR 50                     -               -
                               Controller
                                TOTAL:             MYR 5000            MYR 8000          MYR 10000

Table 6. Return of Investment (ROI)
                            Item                    Overall Cost (MYR)                    Saving (MYR)
                                                   (Before the Installation)           (After the Installation)
                 Amount to be paid/monthly              MYR 175.42                          MYR 31.42
                                                                                            *(Revenue:
                                                                                     MYR 175.42 – MYR 31.42 =
                                                                                             MYR 144)
                            ROI:                                                        RM 5000 / RM 144
                                                                                            = 35 months
                      The Cost of the
                   System/Monthly Cost                                                       = 2.9 years

5. Conclusion

  Based on the research that has been conducted, it is found that an action-based methodology approach
enables the realization of community-based projects to provide sustainable electricity to those in need,
284                        International Journal of Smart Grid and Clean Energy, vol. 10, no. 4, October 2021

even though the system is considered expensive. The analysis of this study has identified that private
charity homes can save the monthly electricity bill by up to 70%, if the electricity is generated from 2-
kWp solar panels, in consideration with the types of appliances in that building. This energy can be
shared locally through a Community-Based Approach (CBA) program with a return of investment (ROI)
of 2.9 years. It is recommended for the Government of Malaysia to provide holistic financial assistance to
local communities in order to ensure that all communities are able to experience self-sufficient and
sustainable electricity from solar energy. Future studies involving the development of green technology at
the micro (rural) level will be needed, which will involve the dissemination of knowledge within local
communities involving the use of Malaysian FIT or NEM energy schemes.

Conflict of Interest

      The authors declare no conflict of interest.

Acknowledgements

   The authors wish to thank the Ministry of Higher Education (KPT) Malaysia for the FRGS Research
Grant Session 2019 - 2020, all volunteers involved in this research project, especially staffs from the
Faculty of Architecture, Planning and Surveying, UiTM Perak Branch, the Perak District Council
(MDPT), non-governmental organizations (NGOs) and all stakeholders that contribute funds towards the
realization of this community project as well as the management of the Maahad Tahfiz Al-Quran Wal-
Qiraat Addin 2 Parit, Malaysia that allowed this study to be carried out in their building.

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